Here's How Netflix Is Shaking Up Hollywood

Amol Sharma explains how Netflix has become a formidable player in Hollywood, especially when it comes original programming and serialized dramas. Photo: AP

This transcript has been automatically generated and may not be 100% accurate.

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I ... the ... next ... that AMC series and the killing and joined a new life things than Netflix now it's no secret that Netflix has found success in the original programming department ... but now it's become a serious mover and shaker in Hollywood high welcome to Digits and Wendy Bounds ... balls into the media and marketing David Garrick chief of Wal Sharma's right here with us ... to talk about this we were looking at the killing ... they carry is one of these examples of the show that might just ... go on the way had it not been for Netflix had any sort of writing to save the day ... well this is a really unusual deal for Hollywood normally there's two parties and television ... and TV till you have ... the network in this case and see the cable network in the studio that selling to them so the Xabi that ... the question be can we make money off as it can AMC By and may make enough money off or shut up ... in this case AMC was canceling it wasn't working out the ratings were lower than the one in the second season ... Netflix road and and said hey what if there's another party at the table what is in exchange for us getting the streaming rights exclusively ... were willing to pony up some cash and that's what happened was that it's a new style of deal it's a share in the cost burden sharing the cost burden so that the Fox TV studio that that was the ... producer of the show ... aam can then go to the cable network and say hey we can be cannot accept a lower fee from you for this and when I mean a possible when will we get to see the third season ... on Netflix ... so Netflix as part of the steel they wrangled out ... on a very quick elliptical we know in Hollywood which is three months after the finale of ... The Killing resident who is in your right it's usually can be as good as long as the year in the streaming deals so they said they ... were willing to participate financially and help get the show back then and then return ... to want something special so ... everyone walked away feeling like they got within one of the deal but ... more portly it was kind of the example of a new type of ... TV deal this the new ways of dealing in the new and I were talking and then ago as confessing the time of binge your ... but they've been Sandy Lane is really benefiting Netflix particularly when the serialized dramas tell Slavov about that here they've really upended some of the assumptions about ... the TV that that that helped turn the business for tech for decades of serialized dramas ... aam traditionally were talkin issues that have long ... story arcs that stretch over many episodes reasons seasons ... those shows were traditionally hard to sell into syndication reruns ... because people would cut and ran on the weekend to to check in on every run and you have no idea where you were in the plot so just knew it wasn't as easy to sell ... and that's where a lot of profits come from the TV ... so that made it a risky it invests in producing the shows you had to can email your Guinea get a lot of the first run on TV ... out with Netflix now people bins on the show they can watch fifteen episodes in a row when whatever they want a full season a week and write and watch the entire season and that is transformed the entire genre now ... though shows how the life after the run TV Netflix isn't a lot of money for them ... men that placed a lot of money for mad men ... there on that a big deal with Warner Brothers to get ... the following which is a new show on Fox before they didn't even aired on television ... they paid for the rights of the following in coming seasons to have them on Netflix ... so they've now really become the biggest and most important buyer ... um ... in the L a in the aftermarket best reruns on TV for serialized drama and also investing in their own a regional programming were seen are in the new black that's coming on soon many others that people been watching I'm wondering now ... about ... how you track ... the success rate on Netflix how many ... people are watching the shows on Netflix to be passed to divulge any numbers and how the industry feel about what they ... I share what they don't or they don't share much and that is the source of some controversy in the industry because ... of course television networks the big broadcasters live with the Nielsen ratings they live and die by those numbers with advertisers ... but Netflix doesn't have advertises and so they say look we ... we don't have any reason to share alot alot of our data ... they claim they use the data internally to help them figure out what to invest and how much to Pay What original shows to make ... aam but in terms of viewership and how many people watched an episode of House of Cards or ... for any of their programs you really you don't know ... how does a lot of guesswork so that that rankle some people the industry they say will we really don't know how well ... the show or that she did ... and that Netflix is happy to be different in kind of changing the rules and in engine performance so Weller stock price has been used on a steady climb over the last twelve months ... at their ... day about ... a lever four percent ... I'm finally back some of the competition though for Netflix specifically mean ... how is the Amazon in Amazon's own stream meaning of videos and in programming how is any impacting what Netflix's can be doing the thing ... well there's a much bigger fight mounting get exclusive rights for for some of these big TV shows Netflix for few years was the main game in town ... for the studios and the companies that were selling their content now ... Amazon's at the table they're willing to pay big bucks bigger box in some cases and Netflix ... so that's made Netflix I'm ... you know they're they're they're they don't wanna go after every single deal guns blazing anymore ... they're trying to figure out where they wanna push the hardest and get exclusive content they're also trying to save some money to invest as you mention in original programming ... which to making a big question now so ... aam the game is this which aims to have another big player in Amazon and of course ... in some areas they overlap with who is well Karen Walsh on more plain tennis team on the addition of common in the last regional thanks for being here thank you thanks for joining digits I'm Wendy downs ...